s g c 0 co. - rajshreepolypack.com · sales tax act 1,34,734 f.y. 2006-2007 appellate tribunal ......

S G C 0 & Co. Chartered Accountants

INDEPENDENT AUDITOR'S REPORT

To the Members of Rajshree Polypack Private Limited

Report on the Financial Statements

We have audited the accompanying financial statements of Rajshree Polypack Private Limited ("the Company"), which comprise the Balance Sheet as at March 31 , 2016, the Statement of Profit and Loss and Cash Flow Statement for the year then ended, and a summary of significant accounting policies and other explanatory information.

Management's Responsibility for the Financial Statements

The Company's Board of Directors are responsible for the matters stated in Section 134(5) of the Companies Act, 2013 ('the act') with respect to the preparation of these financial statements that give a true and fair view of the financial position, financial performance and cash flows of the Company in accordance with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with rule 7 of Companies (Accounts) Rules, 2014. Th is responsibility includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that are operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We have taken into account the provisions of the Act, the accounting and auditing standards and matters which are required to be included in the audit report under the provisions of the Act and the Rules made thereunder.

We conducted our audit in accordance with the Standards on Auditing specified under Section 143(10) of the Act. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4A, Kaledonia-HDIL, 2nd Floor, Sahar Road, Near Andheri Station, Andheri (East), Mumbai - 400 069. India

Tel. : +91 22 6625 6363 Fax: +91 22 6625 6364 E-mail: [email protected] www.sgco.co.in

... - SGCO & Co. Clwrlcruu Accountants

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal financial control relevant to the Company's preparation of the financial statements that give a true and fair view, in order to design audit procedures that are appropriate in the circumstances. An audit also includes evaluating the appropriotcne33 of accounting policie~ used and the reasonableness uf ll H::l e:H . .:t.:uullliii!:J eslitltales I !laue by the Company's management and Board of Directors, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the financial statements.

Opinion

In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial statements give the information required by the Act in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India of the state of affairs of the Company as at 31st March 2016, its profit and its cash flows for the year ended on that date.

Report on Other Legal and Regulatory Requirements

1. As required by the Companies (Auditor's Report) Order, 2016 ("the Order") issued by the Central Government of India in terms of sub-section (11) of section 143 of the Act, we give in the "Annexure A" a statement on the matters Specified in paragraphs 3 and 4 of the Order.

2. As required by section 143(3) of the Act, we further report that:

a) we have sought and obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit;

b) in our opinion proper books of account as required by law have been kept by the Company so far as appears from our examination of those books;

c) the Balance Sheet, Statement of Profit and Loss, and Cash Flow Statement dealt with by this Report are in agreement with the books of account;

d) in our opinion, the aforesaid financial statements comply with the applicable Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules 2014

SGCO & Co. ---Chartered Accountants

e) on the basis of written representations received from the directors as on March 31, 2016, and taken on record by the Board of Directors, none of the directors is disqualified as on March 31 , 2018, frur111Jei11g appointed as a director In terms of Section '164(2) of the Act

0 with respect to the adequacy of the internal financial controls over financial reporting of the Company and the operating effectiveness of such controls, refer our separate report in Annexure B"; and

y) lr r uu1 u!Jilliull and to the best of our IIHOI'matlo11 and according to the explanations grven to us, we report as under with respect to other matters to be included in the Auditor's Report in accordance with Rule 11 of the Companies (Audit and Auditors) Rules, 2014:

i. The Company has disclosed the impact of pending litigations on its financial position in its financial statements (Refer note no. 29a of the Financial Statements)

ii. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses;

iii. There were no amounts which were required to be transferred, to the Investor Education and Protection Fund by the Company.

For S G C 0 & Co. Chartered Accountants

Firm Reg. ::~120~1W

Suresh~~ Partner

Mem. No. 44739

Place: Mumbai

Date: ~*' ~eptem.ber 12.01 b

SGCO & Co. Chartered Accountants

Annexure "A" to Independent Auditor's Report

Annexure referred to in Paragraph 1 of "Report on Other Legal and Regulatory Requirements" of our Report of even date on the accounts of Rajshree Polypack Private Limited for the year ended 31 st March 2016.

As required by the Companies (Auditors Report) Order, 2016 and according to the information and explanations given to us during the course of the audit and on the basis of such checks of the books and records as were considered appropriate we report that:

(i) a) The company has maintained proper re(;ords ::;liOWiiiY full fJalliGulcmi i11duui11y 4Ua11lilalive details and situation of its fixed assets.

b) As explained to us, the fixed assets have been physically verified by the management in accordance with a phased programme of verification, which in our opinion is reasonable, considering the size of the company and the nature of its assets. In accordance with this program certain fixed assets were verified during the year. The frequency of verification is reasonable and no discrepancies have been noticed on such physical verification.

c) According to the information and explanations given to us and on the basis of our examination of records of the Company, the title deeds of immovable properties are held in the name of the Company.

(ii) The inventories have been physically verified by the management during the year at reasonable intervals. Discrepancies noticed on physical verification of inventories as compared to book records were not material and have been properly dealt with in the books of account.

(iii) a) During the year the Company has not granted any Loan, secured or unsecured, to any party covered in the registered maintained under section 189 of the Companies Act, 2013.

b) In view of our comments in para (iii) (a) above, clauses 3 (iii) (a), (b) and (c) of the said Order are not applicable to the Company.

(iv) In our opinion and according to the information and explanation given to us, the company has given Collateral security to a bank in respect of loan obtained by a partnership firm in which directors of the company are interested as a partner, which is not in compliance with section 185 of the act, however the same has been released subsequently in the month of July 2016. The Company has complied with the provisions of section 186 of the Companies Act, 2013 in respect of aforesaid Collateral Security.

(v) In our opinion and according to the information and explanations given to us, the Company has not accepted any deposits from the public during the year.

SGCO & Co. - -Chartered Accountan ts (vi) The Central Government has prescribed for maintenance of cost records under section 148 (1) of

the Companies Act 2013 We have not reviewed the cost records maintained by the Company but based on the information submitted by the Company we are of the view that such accounts and records have been made and duly maintained.

(vii) a) According to the records of the Company, amount deducted/accrued in the books of accounts in respect of the undisputed statutory dues including Provident Fund, Employee's State Insurance, Income tax, Sales tax, Service tax, Duty of Customs, Duty of Excise, Value Added Tax, Cess and other Statutory Dues to the extent applicable to the Company, have not generally been regularly deposited with the appropriate authorities though the delays in deposit have not been serious. According to the information and explanations given to us, there are no undisputed amount payable in respect of such statutory dues which have remained outstanding as at 31st March, 2016 for a period more than six months from the date they became payable.

b) According to the information and explanations given to us, disputed dues of Income Tax, Sales Tax, Service Tax, Duty of Custom, Duty of Excise, and Value Added Tax which have not been deposited on account of disputes with the related authorities are as under.

Name of Statute Amount Period to which Forum where dispute is amount relates Pending

Sales Tax Act 1,34,734 F.Y. 2006-2007 Appellate Tribunal

Income Tax Act 2,09,710 A.Y. 2012-2013 The Commissioner of Income Tax (Appeal)

Income Tax Act 1,34,830 A.Y. 2012-2013 The Dy.Commissioner of Income Tax

(viii) The Company has not defaulted in repayment of its dues to banks and financial institutions and has not issued debentures.

(ix) The company did not raise money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, paragraph 3 (ix) of the order is not applicable.

(x) According to the information & explanations given to us, no fraud by the company or on the company by its officers or employees has been noticed or reported during the course of our audit.

(xi) This being a Private Limited Company, section 197 of the Companies Act, 2013 is not applicable to the Company. Accordingly, paragraph 3 (xi) of the order is not applicable.

(xii) In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. Accordingly, paragraph 3 (xi i) of the Order is not applicable.

SGCQ_&Co. l.hnrtr.rr. rl Ar.r.n 11 ntnn ts

(xiii) According to the information and explanation given to us and based on our examination of the records of the Company, all transactions entered into by the Company with the related parties are in compliance with section 188 of the Act and the details have been disclosed in the financial statements as required by the applicable accounting standards. However, section 177 of the Act is not applicable to the Company.

(xiv) The Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year.

(xv) According to the information and explanation given to us and based on our examination of the records of the Company, the Company has not entered into any non-cash transactions with the directors or persons connected with him. Accordingly, paragraph 3 (xv) of the Order is not applicable.

(xvi) In our opinion and according to the information and explanation given to us, the Company is not required to be registered under section 45-IA of the Reserve Bank of India Act, 1934.

For S G C 0 & Co. Chartered Accountants Firm Reg. No. 112081W

~\ -SureshMu~ Partner Mem No: 44739

Place : Mumbai.

Date : g+"~ Septtmbu-12.01 b

SGCO & Co. Chartered Accountants

Annexure "8" to the Independent Auditor's Report of even date on the financial statements of

Rajshree Polypack Private Limited for the year ended 31st March 2016.

Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section 143

of the Companies Act, 2013 ("the Act")

We have audited the internal financial controls over financial reporting of Rajshree Polypack Private LimitP.cf ("thP. \.omr::~ny") as of March 31 , 2016 in conjunction with our audit of the financial statements of the Company for the year ended on that date.

Management's Responsibility for Internal Financial Controls

The Company's management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013.

Auditors' Responsibility

Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the "Guidance Note") and the Standards on Auditing, issued by ICAI and deemed to be prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both applicable to an audit of Internal Financial Controls and, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that We comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was established and maintained and if such controls operated effectively in all material respects.

Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls system over financial reporting and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the

4A, Kaledonia-HDIL, 2nd Floor, Sahar Road, Near Andheri Station, Andheri (East), Mumbai - 400 069. India

Tel. : +91 22 6625 6363 Fax: +91 22 6625 6364 E-mail: [email protected] www.sgco.co.in

Chartered Accountan ts

assessed risk. The procedures selected depend on the auditor's judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Company's internal financial controls system over financial reporting.

Meaning of Internal Financial Controls Over Financial Reporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are .being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regard ing prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting to future periods are subject to the risk that the internal financial control over financial reporting may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Qualified Opinion

According to the information and explanation given to us and based on our audit, the following material weakness has been identified in the operating effectiveness of the Company's internal financial controls over financial reporting as at 31 st March , 2016:

The documentation in respect of specific policies and procedures and the IT Controls pertaining to internal financial controls over financial reporting are not adequate and needs to be further strengthened. This may potentially result in the risk of overriding of these controls and misstatement in recording of transaction.

A "material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial

SGCO&Co. Chartered Acco untants

reporting, such that there is a reasonable possibil ity that a material misstatement of the Company's annual will not be prevented or detected on a timely basis.

In our opinion , except for the possible effect of the material weakness described above on the

ac;hiev~ment of the objective~ of th~ control C rit~ ri~ . th~ Comp!'lny h~~ mnintnim~ct . in nil mntminl respects , an adequate internal financial controls system over financial reporting and such internal financial controls over financial reporting were operating effectively as at March 31, 2016, based on the internal control over financial reporting criteria established by the Company considering the A s.;f\ Antir~l r.omronf'lntf. of intf'lrnal control r.tated in tho Guidcmco Noto on Audit of Internal Financial Centrals Ov~ l' linancial R13porling iMued by lhti lnE.lilultJ uf Clidi[I::JII::JU At-WUIIld illL ur llluid.

We have considered the material weaknesses identified and reported above in determining the nature, timing and audit tests applied in our audit of the financial statements of the Company and these material weaknesses above does not affect our opinion on the financial statements of the Company.

For S G C 0 & Co

Suresh Murark Partner Mem. No. 44739 Place : Mumbai Date : g*"Se-ptemher, 201 b

Rajshree Polypack Private Limited

Balance Sheet As At March 31, 2016

Particulars

EQUITY AND LIABILITIES Shareholders' funds Share capital Reserves and surplus

Non-current liabilities Long-term borrowings Deferred tax liabilities (Net) Other Long term liabilities

Current liabilities Short-term borrowings Trade payables Other current liabilities Short-term provisions

ASSETS Non-current assets Fixed assets - Tangible assets - Intangible Assets

Capital work-in-progress Intangible asset under development

Non-current investments Long-term loans and advances

Current Assets Inventories Trade receivables Cash and bank balances Short-term loans and advances

Summary of significant accounting policies Accompanying notes to the financial statements In terms of our report of even date For S G C 0 & Co. Chartered Accountants

Suresh~ Partner Membership No. 044739 Place: Mumbai

Date: S"*' Se-p-tember, 201 b

(Amount in Rs.)

Note No. As at As at

March. 31 , 2016 March 31,2015

2 2,65,86,870 2,47,86,870 3 28,33,87,830 21 ,19,07,619

30,99,74,700 23,66,94,489

4 18,68,14,908 21 ,70,09,817 5 3,70,20,844 59,85,199 6 28,84,204 1,07,46,357

22,67,19,956 23,37,41,372

7 7,57,52,941 5,96,23,665 8 7,52,50,286 6,44,78,730 9 5,51 ,03,432 4,52, 79,209 10 1,65,00,102 36,00,330

22,26,06, 762 17,29,81,934

75,93,01,417 64,34,17,796

11 37,45,21 ,062 36,58,84,410

23,43,091 11A 38,10,531 11 B 34,28,913

38,06,74,684 36,93,13,323

12 24,94,307 22,14,626 13 5,47,21 ,548 2,10,24,467

5, 72,15,856 2,32,39,093

14 7,33,57,335 8,05,72,699 15 14,12,04,378 9,59,61,054 16 9,39,65,312 4,54,23,168 17 1,28,83,852 2,89,08,457

32, 14,10,877 25,08,65,379

75,93,01,417 64,34,17' 796

1 to 41

For and on behalf of the Board of Directors of

~ -· amswaroop Thard Naresh Thard anaging Director Managing Director

DIN:02835505 DIN: 03581790 Place: Mumbai

Date: 8-fl-t Stpttrn bU1 20 I b


Statement of Profit and Loss For the year Ended March. 31,2016

(Amount in Hs.)

Particulars Note Year ended Year ended No. March 31, 2016 March 31, 2015

Income Revenue from operations (Gross) 18 1 ,06,43,31 ,016 73,14,94,891 Less : Excise Duty 11 ,40, 17,321 8,30,56,627

Revenue from operations (Net) 95,03,13,695 64,84,38,264 Other income 19 41,16,683 9,50,705

Total Revenue (I) 95,44,30,379 64,93,88,969 Expenses Cost of materials consumed 20 48,56,94,465 35,22,54,128 Purchases of stock-in-trade 21 98,68,955 1 ,88,00,487 Changes in inventories of finished goods, WIP & stock-in-trade 22 3,67,525 22,14,836 Employee benefits expenses 23 7,00,00,991 5,06,21 ,856 Finance costs 24 3,96,78,834 3,90,42,892 Depreciation and amortization expense 11 4,16,09,996 3,93,94,711 Other expenses 25 18,89,22,689 13,75,82,770

Total Expenses (II) 83,61,43,456 63,99,11,681

Profit before tax Prior period Items 11,82,86,923 94,77,288

Add: Prior period (Expenses)/lncome (Net) 26 14,50,715 10,42,911 Profit before tax 11,97,37,638 1 ,05,20, 199

Tax Expenses: (1) CurrentTax 2,55,41 ,770 19,29,869 Less: Minimum Alternate Tax Credit Entitlement 1 ,63,43,420 17,47,800 Net Current Tax 91,98,350 1,82,069 (2) Deferred Tax Liability/ (Assets) (net) 3,10,35,645 35,77,308 (3) Add/(Less) Taxes of earlier years (90,297) (3,000) Profit for the year 7,94,13,345 67,57,822

Earnings per equity share ofF ace Value of Rs.1 0 each 27 - Basic and Diluted 31 .85 2.73 Summary of significant accounting policies Accompanying notes to the financial statements 1 to 41

For and on behalf of the Board of Directo~f 1

' ;:::~pa~Limited @~

amswaroop Thard Naresh Thard Partner anaging Director Managing Director Membership No. 044739 DIN: 02835505 DIN: 03581790 Place: Mumbai Place: Mumbai

Date: ~-th S~b if 12 0 I b Date: ~+h S e.pl;em b u-, '2.0 I b

Rajshree Polypack Private Limited Cash Flow Statement for the year ended March 31, 2016

Particulars

A. Cash Flow from Operating Activities Net Profit before taxation Add: Depreciation on fixed assets Loss on sale of Investment Finance cost

Less: Sundry Balanooo Writton baol( Net (Gain)lloss on Foreign Currency Translation Dividend income Interest income Operating Profit before Working Capital changes

Adjustments for : (Increase) I Decrease in inventories (Increase) I Decrease in trade receivables (Increase) I Decrease in short term loans and advances (Increase) I Decrease in long term loans & advances (Increase) I Decrease in other current assets Increase I (Decrease) in trade payable Increase I (Decrease) in short term provisions Increase I (Decrease) in other current liabilties CASH GENERA TED FROM OPERATIONS Income tax Paid

Net Cash inflow from/ (outflow) from Operating activities

B. Cash Flow from Investing Activities Purchase of Fixed Assets Additions in Capital Work in Progress Intangible Assets under development Purchase of Investments Sale of Investments Investment in Fixed Deposits Dividend Received Interest Received Net Cash inflow from/ (outflow) from Investing activities

Year ended March 31,2016

11,82,86,923

4,16,09,996

3,96,78,834

(7,85,250) 40,125

14,61 ,382 19,88,59,496

72,15,364 (4,52,43,324) 1,60,24,605

(1 ,69,68,371)

1,07,71 ,557 11 ,52,493 98,24,223

18,16,36,043 1,74,70,021

16,41,66,022

(4,77, 10, 112) (38,10,531)

(2,79,681)

(8,23,496) 40,125

14,61 ,382 (5,11,22,313)

(Amount in Rs) Year ended

March 31, 2015

94,77,288

3,93,94, 711 1,253

3,90,42,892

(0,62,010) 6,87,873

81 ,719 8,68,986

8,72,39,585

(1 ,93, 18,840) (3,89,06,944)

70,49,911 (26,01 ,573)

6,74,656 1 ,84,32,423

14,79,126 1,13,46,196 6,53,94,541

18,29,754

6,72,24,295

(2,40,78,968)

(6,49,167) (3,21 ,719) 25,00,000

(88,10,647) 81,719

8,68,986 (3,04,09, 797)

Rajshree Polypack Private Limited Cash Flow Statement for the year ended March 31, 2016

Particulars

C. Cash Flow from Financing Activities Proceeds from long term borrowings Proceeds short term borrowings Other Long term liabilities Interest paid Proceeds from conversion of partly Paid Up Share into fully Paid Up Proceeds from increase in Securities Premium Interim Dividend Paid (including Dividend Distribution Tax) Net Cash inflow from/ (outflow) from Financing activities

Net increase I (decrease) in cash and cash equivalents

Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year

Note 1 :

Year ended March 31 , 2016

(3,01 ,94,909) 1 ,61 ,29,276 (86,47,403)

(3,96,78,834) 18,00,000 72,00,000

(1 ,19,33, 192) (6,53,25,062)

4,77,18,647

3,40,73,193 8,17,91,841

(Amount in Rs) Year ended

March 31, 2015

28,91 ,206 3,45,68,845 (46,66, 144)

(3,90,42,892)

(62,48,985)

3,05,65,514

35,07,679 3,40,73,193

Cash and Cash Equivalents at the end of the year consists of cash in hand and balances with banks are as follows :

Particulars

Closing Cash and Cash Equivalents Cash in hand Bank Balance Fixed Deposits

Note 2:

As at As at March 31,2016 March 31,2015

18,48,695 6,29,27,607 1,70,15,539 8,17,91 ,841

14,47,910 3,10,02,100

16,23,183 3,40,73,193

The Company has used Indirect method for preparation of Cash flow statement in accordance with Accounting Standard-3.

Note 3:

Previous year's figures have been regrouped and rearranged wherever necessary in order to conform to current year's figures.

In terms of our report of even date

For S G C 0 & Co. Chartered Accountants

Sures~ Partner Membership No. 044739

Place: Mumbai

Date: S*' Stp'ttt-rtbe.r-, '2-0 I b

For and on behalf of the Board of Directors Rajshree Polypack Private Limited

\tr n. .. .od:> ~

. ~\..N~"-vY '

R swaroop Thard anaging Director

DIN: 02835505

Place: Mumbai

~ Naresh Thard Managing Director DIN: 03581790

Date: g-firi.Stptun bif I 2. 0 It,

. '


Accompanying notes to the finanical statements for the year ended March 31, 2016

Note 1 : Significant Accounting Policies:

Overview Rajshree Polypack Private Limited ("The Company") is a private company domiciled in India and incorporated under the provisions of Companies Act, 1956.The Company is engaged in the Business of Manufacturing and trading of Thermoformed Disposal Plastic Products & Plastic Ri~id sheets

A B!i~ls tlt Ai!t:tlUI'Itll'l~! a) The Financial Statements have been prepared In compliance with the Accounting Standards specified under section 133 of the Companies Act, 2013 read with Rules 7 of the Companies (Accounts) Rule, 2014

b) Financial Statements are based on historical cost convention and are prepared on accrual basis.

B Use of Estimates:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the financial statements and the reported amounts of revenues and expenses during the reporting period.

Difference between actual results and estimates are recognized in the periods in which the results are known/ materialize.

C Revenue Recognition i) Revenue is recognised when it is earned and no significant uncertainty exists as to its realisation or collection

ii) Sales are recognised when all significant risks and reward of ownership of the goods are passed on to the buyer.

iii) Interest is recognised on a time proportion basis taking in to account the amount outstanding and the rate applicable.

iv) Dividend income is recognised when right to receive the payment is established.

D Inventories: Inventories are valued as follows:

i) Raw Material are valued at lower of cost or net realisable value. ii) Work-in-process and Finished Goods are measured at lower of cost and net realisable value. Cost of

inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

iii) Packing Material are valued at lower of cost or net realizable value. iv) Printing Ink is valued at lower of cost or net realizable value. v) Stores and Spares are Valued at Cost. vi Unusable wastage is valued at Net realisable value

E Investments: Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investment and are carried at cost less any provision for diminution in value other than temporary . Investments other than long term investments being current investments are valued at cost or fair value whichever is lower.


Accompanying notes to the finanical statements for the year ended March 31, 2016

F Fixed Assets:

Fixed Assets are stated at actual cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

G Impairment of Assets: An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impainment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

H Depreciation & Amortisation: 1) Depreciation on all Fixed Assets is provided on 'Straight Line Method' at the rates and in the manner prescribed in the Schedule II of the Companies Act, 2013.Depreciations on additions & deletions made during the year is provided on pro-rata basis from & upto the date of acquisitions and deletions of assets respectively.

2) Intangible assets are amortised over a period of Three years.

Accounting for Taxes of lncome:Current Taxes Provision for current income-tax is recognized in accordance with the provisions of Indian Income- tax Act, 1961 and is made annually based on the tax liability after taking credit for tax allowances and exemptions

Deferred Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to timing differences that result between the profits offered for income taxes and the profits as per the financial statements. Deferred tax assets and liabilities are measured using the tax rates and the tax laws that have been enacted or substantially enacted at the balance sheet date. Deferred tax Assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future. Deferred Tax Assets are reviewed as at each Balance Sheet date.

Minimum Alternate Tax Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the fonm of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

J Provisions and Contingent Liabilities: i) Provisions are recognized in tenms of Accounting Standard 29- "Provisions, Contingent Liabilities and Contingent Assets in accordance with the Accounting Standard specified under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014 when there is a present legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

ii) Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for.

iii) Contingent Liabiltities are disclosed by way of Notes


Accompanying notes to the finanical statements for the year ended March 31, 2016 K Employee Benefits : i) Company's contribution to Provident Fund and other Funds for the year is accounted on accrual basis and

charged to the Statement of Profit & Loss for the year. ii) Retirement benefits in the form of Gratuity are considered as defined benefit obligations and are provided on

the basis of the actuarial valuation, using the projected unit credit method as at the date of the Balance Sheet.

iii) Leave encashment is accounted on acrrual basis

L Foreign Currency Transactions : i) The transactions in foreign currencies are stated at the rate of exchange prevailing on the date of transactions.

ii) The difference on account of fluctuation in the rate of exchange prevailing on the date of transaction and the date of realization is charged to the Statement of Profit and Loss.

iii) Differences on translations of Monetary Assets and Monetary Liabilities remaining unsettled at the year-end are recognized in the Statement of Profit and Loss.

M Borrowing Costs:

Borrowing costs are recognised as an expense in the period in which they are incurred except the borrowing cost attributable to be acquisitions I constructions of a qualifying assets which are capitalised as a part of the cost of the fixed assets, up to the date, the assets are ready for its intended use.

N Miscellaneous Expenditure: Preliminary expenses are amortised in the year in which they are incurred.

Rajshree Polypack Private Limited /\ccompanvin~ noto6 to tho financial ctatomontc for tho year ended March , 2016

(Amount in ~s.) Note 2 : Share capital a. Details of authorised, issued and subscribed share capital.

Particulars As at As at

March 31 , 2016 March 31, 2015 Authorised Capital 35,00,000 (P.Y. 35,00,000) Equity Shares of Rs.10/- each 35,000,000 35,000,000

Issued and Subscribed Capital 26,58,687 (P.Y. 2,658,687) Equity Shares of Rs.10/- each 26,586,870 26,586,870

Paid up Capital 2,G!.JO,GO/ (1-'.Y. 24,GO,GU7} Equity Shares of Rs.10/- each fully paiu up 2G,G8G,870 24,580,870 Nil (P.Y. 2,00,000) Equity Shares of Rs. 10/- each Partly Paid up Re.1/- (P.Y Re.1/-) - 200,000

26,586,870 24,786,870

b. Reconciliation of the number of equity shares outstanding at the beginning and at the end of the reporting Year of Rs 10/- fully paid up.

As at As at Particulars March 31,2016 March 31,2015

Number Rs. Number Rs. Shares outstanding at the beginning of the reporting period 2,458,687 24,586,870 2,458,687 24,586,870 Add: Partly paid up Equity shares converted into fully paid-up equity shares 200,000 2,000,000 - -Shares outstanding at the end of the year 2,658,687 26,586,870 2,458,687 24,586,870

c. Reconciliation of the number of equity shares outstanding at the beginning and at the end of the reporting Year of Rs 1/- partly paid up.

As at As at Particulars March 31, 2016 March 31, 2015

Number Rs. Number Rs. Shares outstanding at the beginning of the reporting 200,000 200,000 200,000 200,000 Add: Partly paid up Equity shares converted into fully paid-up equity shares - 1,800,000 - -

Less: Transfer of partly paid shares to Conversion of Partly Paid-Up shares fully paid-Up Shares 200,000 2,000,000 - -Shares outstanding at the end of the year - - 200,000 200,000

d. Terms/rights attached to equity shares The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per equivalent fully paid up equity share.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equivalent fully paid up equity shares held by the shareholders.

Rajshree Polypack Private Limited Accompanying notes to the financial statements for the year ended March , 2016

(Amount in Rs.) e. Details of shareholders holding more than 5% shares in the Company

As at As at Name of Shareholder March 31, 2016 March 31, 2015

Number Percentage Number Percentage Equity Shares of Rs.10/- each fully paid up Wifag Polytype Holding AG 7,42,028 27.91% 7,42,028 30.17% Ramswaroop Radheshyam Thard 6,70,803 25.23% 6,00,803 24.43% Sajjankumar N. Rungta HUF 5,75,044 21 .63% 5,15,044 20.94% Naresh Radheshyam Thard 5,50,143 20.69% 4,92,143 20.01 %

Note 3 : Reserves and surplus

Particulars As at As at March 31, 2016 March 31,2015

a. Securities Premium Account Balance as per last financial statements 17,87,27,030 17,87,27,030 Add : Premium on conversion of Partly paid up to share fully paid up 72,00,000 -

Less: Share issue expenses -Closing Balance 18,59,27,030 17,87,27,030

b. Surplus/ (deficit) Balance as per last financial statements 3,31 ,80,589 2,66,20,792 Add: ProfiU(Loss) for the year 7,94,13,345 67,57,822 Add/Less: Adjustment in terms of Note 7(b} of Schedule II of Companies Act, 2013 (Net of deferred tax ) (Refer Note No.39) - (1 ,98,025) Less: Interim Dividend Paid 99,14,748 -Less: Dividend Distribution Tax 20,18,444 -

Less: Proposed Dividend 26,58,687 Less: Proposed Dividend Distribution Tax 5,41 ,256

Closing Balance 9,74,60,799 3,31,80,589

Total 28,33,87,830 21 '19,07,619

Note 4 : Long-term borrowings


March 31, 2016 March 31, 2015 From Bank (Secured)

Term loan 21 ,25, 12,804 23,42,93,466 Less : Current maturities of long term debt 2,76,00,000 2,28,00,000 Less : Interest accrued but not due 5,60,482 5,41 ,145

18,43,52,322 21,09,52,321

Car Loan 5,54,818 7,12,319 Less : Current maturities of long term debt 1,81 ,146 1,62,375 Less : Interest accrued but not due 4,874 -

3,68,798 5,49,944

Unsecured Loan From Financial Companies 55,81,071 99,17,850 Less: Current maturities of long term debt 34,13,928 42,75,962 Less : Interest accrued but not due 73,355 1,34,336

20,93,788 55,07,552 Total 18,68,14,908 21,70,09,817


(Amount in Rs.) a) Term loan from bank amounting Rs. 21 ,25,12,804/- (P.Y. 23,42,93,466/-) was taken from Union Bank of India and carries interest rate of Base rate+ 3.5%. The loan is repayable in 81 monthly installments commencing from April 2014. The loan is secured by hypothecation of building and Plant & Machinery. Further, the loan has been guaranteed by the corporate guarantee of Babson Industries and personal guarantee of managing directors.

b) Car Loan tram bank amounting Rs. 5,54,818/- (P.Y. 7,12,319/-) was taken in the Previous year and carries an interest rate of 10.99%. The loan is repayable in 60 (Sixty) monthly installments commencing from January 2014. The Loan is secured by hypothecation of the said Vehicle.

c) Loan from Financial Companies amounting to Rs.55,81 ,071 /- (P.Y. 99,17,850/-) is unsecured and carries interest rate ranging from 18.05% to 19.57%. The loan is repayable in 24 to 48 monthly installments amount ranging from 1,21 ,572/- toRs. 2,16,427/-commencing from respective uale uf filli:IIIGt! .

Note 5 : Deferred tax liabilities (Net) Tl f d f d II bill 1e lllaJor components o e erre tax a I d I h f . I ty asset as reco~n ze n t e inanc1a statement IS as allows:

Particulars As at As at March. 31, 2016 March 31, 2015

Deferred Tax Liability El\uuuu ~uyriiUIIliiiUtlu lu C1uluily funtl " 29,4J7 Excess of net block of fixed assets as per books of accounts over net block for tax purpose 3,76,35,718 2,99,73,123

3,76,35,718 3,00,02,560

Deferred Tax Asset Preliminary expenses - 21 ,896 Provision for employee benefits 2,26,203 5,47,109 Provision For Unabsorbed depreciation - 2,30,83,275 Provision for doubtful trade receivables 3,88,670 3,65,081

6,14,873 2,40,17,360

Total 3,70,20,844 59,85,199

Note 6 : Other Long term liabilities

Particulars As at As at March. 31, 2016 March 31, 2015

Creditors for capital goods 84,48,356 1,58,47,107 Less: Current maturities of creditors for capital goods 55,64,153 51,00,750 Total 28,84,204 1,07,46,357

Note 7 · Short-term borrowings


March. 31 , 2016 March 31, 2015 Secured Cash credit 5,90,08,755 5,96,23,665 Less : Interest accrued and due 1,25,286 -

5,88,83,469 5,96,23,665

Loan against Fixed Deposits 1,71 ,37,369 . Less : Interest accrued and due 2,67,897

1,68,69,472 .

Total 7,57,52,941 5,96,23,665


(Amount in Rs.)

1.Cash credit from bank amounting to Rs.5,90,08,755/- (P.Y. 5,96,23,665/-) is secured by hypothecation of entire stock & book debts. The credit facility has been guaranteed by the corporate guarantee of Babson Industries and personal guarantee of managing directors. The cash credit is repayable on demand and carries interest@ Base Rate+ 3.5% p.a and pledge of Mutual Fund units

2.Loan against Fixed Deposit from Union Bank of India amounting Rs. 1,71 ,37,369/- (P.Y.Nil) was taken in the Current year and carries an interest rate between 7.50% to 9.75%.i.e Fixed Deposit rate+ 1%. The Loan is secured against Fixed Deposits.

Note 8 : Trade payables


March. 31,2016 March 31, 2015 Trade Payables Due to Micro, small and Medium Enterprises * 6,16,599 5,81 ,383 Others 7,46,33,687 6,38,97,347 Total 7,52,50,286 6,44,78,730

Disclosures under Sec 22 of Micro, Small and Medium Enterprises Development Act, 2006 to the extent information available with the company are as under :


March 31,2016 March 31, 2015 The principal amount and the interest due thereon remaining unpaid to any supplier as at the end of

accounting year; 6,16,599 5,81,383 The amount of interest accrued and remaining unpaid at the end of accounting year; and - -

The amount of interest paid by the buyer in terms of section 16 along with the amount of the

payment made to the supplier beyond the appointed day during the year - -

The amount of interest due and payable for the period (where the principal has been paid but

interest under the MSMED Act, 2006 not paid); - -The amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid to the small enterprise, for the purpose of disallowance as a deductible expenditure under section 23. - -

Note: Interest paid or payable by the company on the aforesaid payable amount has been waived by the respective supplier.

Note 9 · Other current liabilities


March. 31 , 2016 March 31, 2015 Current Maturities of long term loans 3,11 ,95,074 2,72,38,337 Current maturities of creditors for capital goods 55,64,153 51,00,750 Interest Accrued but not Due 10,31,894 6,75,481 Creditors for capital goods 9,98,209 12, 16,182 Advance received from customers 44,61 ,530 19,28,201 Expenses payable 81,57,943 63,20,397 Statutory dues payable 36,94,629 27,99,861 Total 5,51,03,432 4,52,79,209


(Amount in Rs.)

Note 10 : Short-term provisions


March. 31 , 2016 March 31 , 2015 Provision for employee benefits: Leave encashment 6,24 , 1B~ 5,05, 9~(

Oonug 16, 14,074 '12,04,622 Oruluily u . u~. 109 J-!1 U~Uil i:H.l OIVIUIJI H.l ~U . ~U . UU /

Proposed Dividend Distribution Tax 5,41 ,259 Provision of Taxation (net of Advance tax) 1,03,77,087 18,29, 7!i1 Total 1 65 00 102 ~MQ.~~Q

00~0

Note 11A · Capital work-in-progress '

I II IIIII " '"'"" '·"'""'·"'' !111.111111 ' " ., A'SI'af ' ,,, As at Particulars

March. 31, 2016 March 31, 2015 Plant and machinery 29,35,078 -

Pre-operative expenses 8,75,453 -

Total 38,10,531 .

Note 118 ·Intangible asset under development


March. 31, 2016 March 31, 2015 Software - 34,28,913 Total . 34,28,913

Note 12: Non-current investments (Valued at cost unless stated otherwise)

'


March. 31 , 2016 March 31, 2015 Non-trade Investments Investments in Mutual Funds (unquoted) 773.164 (P.Y.733. 148) units of Rs. 1,000 each fully paid up of Reliance Money Manager Fund 7,74,307 7,34,626

17,304.911 (P.Y. 13,054.781) units of Rs. 10 each fully paid up of ICICI Pro Focused Blue-chip 4,00,000 2,80,000 Equity Fund

21 ,333.843 (P.Y. 19,661.711) units of Rs. 10 each fully paid up of Reliance Equity Opportunities 9,70,000 8,50,000 Fund

11 ,664.606 (P.Y. 11 ,664.606) units of Rs. 10 each fully paid up of UTI Opportunity Fund 3,50,000 3,50,000 Total 24,94,307 22,14,626


March. 31, 2016 March 31, 2015 Aggregate market value of quoted investments - -

Aggregate book value of quoted investments - -

Aggregate value of unquoted investments 24,94,307 22,14,626

Note: 773.164 units of Reliance Money Manager Fund, 11 ,664 units of UTI Opportunity Fund and 17,304.911 units of ICICI Pro focussed Bluechip Equity Fund are pledge with Union Bank of India against Cash credit facil ity

Rajshree Polypack Private Limited Accompanying notes to the finanical statements for the year ended March, 2016

Note 11 : Fixed Assets (Amount in Rs.) Gross Block Accumulated Depreciation Net Block

PARTICULARS As at Additions As at As at Depreciation

As at As at As at

April1, 2015 during the Year March 31, 2016 April1 , 2015 charge for the Adjustments *

,March 31,2016 March 31, March 31, year 2016 2015

Tangible Assets Land 69,48,135 - 69,48,135 - - - - 69,48,135 69,48,135 Building 7,71 ,82,116 - 7,71 ,82,116 1,01 ,33,592 22,88,758 - 1,24,22,350 6,47,59,766 6,70,48,524 Plant & Machinery 30,66,06,679 3,09,21,415 33,75,28,094 7,11,29,372 2,92,83,940 - 10,04,13,312 23,71,14,782 23,54,77,307 Moulds & Dies 4,60,78,482 1,34,89,373 5,95,67,855 96,84,241 50,58,000 - 1,47,42,241 4,48,25,614 3,63,94,241 Electric Installation 1,09,75,434 2,32,563 1 '12,07,997 38,14,142 10,64,821 12,66,119 36,12,844 75,95,152 71,61,291 Computers 30,74,132 7,67,812 38,41 ,944 18,46,055 8,25,226 45,731 26,25,549 12,16,395 12,28,078 Fire Extinguishers 3,86,645 1,28,250 5,14,895 94,314 29,175 - 1,23,489 3,91,406 2,92,331 Furniture & Fixtures 93,09,210 10,83,629 1,03,92,839 14,00,338 9,46,690 - 23,47,028 80,45,811 79,08,872 Office Equipment 25,78,953 10,41,441 36,20,394 14,11,538 5,15,215 1,38,865 17,87,888 18,32,506 11 ,67,415 Vehicles 37,21 ,030 45,629 37,66,659 14,62,814 5,12,349 - 19,75,163 17,91,496 22,58,216 !

Total 46,68,60,815 4,77,10,112 51 ,45, 70,927 1 0,09, 76,405 4,05,24, 17 4 14,50,715 14,00,49,864 37,45,21,062 36,58,84,410 I

Previous Year 40,07,88,510 6,60,72,305 46,68,60,815 6,19,83,609 3,96,81,289 6,88,493 10,09,76,405 36,58,84,410 33,88,04,901

Intangible Assets ERP - 34,28,913 34,28,913 . 10,85,822 - 10,85,822 23,43,091 .

. 34,28,913 34,28,913 . 10,85,822 . 10,85,822 23,43,091 . Previous Year . . . . . . . .

--

Total 46,68,60,815 5,11,39,025 51,79,99,840 1 0,09, 76,405 4,16,09,996 14,11 ,35,686 37 ,68,64, 153 36,58,84,410

*Excess Depreciation provided in early Years


Notfil n ; h9n~-t~rm lq;ml'i 110~ ii~ViiOI<~~ (Unsecured, considered good)

Particulars

CCJ~IWI Advances Security deposits Advance Tax and TDS (Net of Provisions) Balance with statutory/ government authorities Minimum Alternate Tax Credit Entitlement Total

Note 14: Inventories

P<Jrticulars

i) Valued at lower of cost or net realisable value Raw Materials Work-in-progress Finished goods Packing Material Printing Ink ii) Valued at cost Stores and spares iii) Valued at net realisable value Unusable Wastage

Total

Note 15: Trade receivables (Unsecured)

Particulars

Outstanding for a period exceeding six months from the date they are due for payment Considered good Considered doubtful

Less: Provision for doubtful debts

Others Considered good

Total

Trade Receivables stated above include debts due by-

Particulars

Due from partnership firm in which director is interested

Note 16 · Cash and bank balances

Particulars

Cash & Cash Equivalents Balances with banks:

On current accounts Cash on hand

Fixed Deposit (original maturity less then three Months) Other bank balances:

Fixed Deposit (Maturity more then three months less then twelve months) Fixed Deposits more then 12 months

/~~ Total

'l~~~~ ( * ~· 1 • '-0~:'W\* i

0~~ / ~ ~ ~19rec:_~o:P.'§:'

As at March. 31 , 2016

2,31,85,204 40,46,000 6,67,664

71 ,99,396 1,96,23,285 5,47,21,548

As at March. 31, 2016

2,82,48,823 1,27,64,797 1,79,86,891

55,60,521 22,59,870

46,74,649

18,61,784

7,33,57,335


10,06,815 11,75,544 21 ,82,359 11,75,544 10,06,815

14,01 ,97,563 14,01,97,563

14,12,04,378


6,426

As at March. 31 , 2016

6,29,27,607 18,48,695

1 ,70, 15,539

1,09,45,532 12,27,939

9,39,65,312

(Amount in Rs.)

As at March 31 , 2015

88 , 1 ~ . 5~4 35,02,600 6,67,477

51,47,292 28,94,574

2,10,24,467

As at March 31 , 2015

3,69,18,506 1,61,75,330 1,87,10,014

36,46,230 17,15,109

32,32,967

1,74,544

8,05, 72,699

As at March 31, 2015

29,76,085 11 ,81,491 41 ,57,575 11 ,81,491 29,76,085

9,29,84,969 9,29,84,969

9,59,61,054


59,29,647


3,1 0,02, 100 14,47,910 16,23, 183

1,01 ,94,893 11 ,55,082

4,54,23,168


(Amount in Rs.) Fixed Deposit given as security FDR amounting to Rs.1 ,94,91 ,476/-(P Y Nil )have been pledged with the bank towards Loan against FDR taken from Union Bank of India.

FDR amounting to Rs.Nil (P.Y. 22,12,672/-)have been pledged with the bank towards the Company's bank guarantee and FOR amounting toRs. 1,80,000 (P.Y 1 ,80,000) are pledged with electricity department.

Note 17 : Short-term loans and advances (Unsecured considered good)

'


March. 31, 2016 March 31, 2015 Advances recoverable in cash or in kind 52,07,088 33,94,335 Deposits 11,01,775 5,60,525 Investment in Gratuity Fund . 95,264 Balance with statutory/ government authorities 65,74,989 2,48,58,333 Total 1,28,83,852 2,89,08,457

Note 18: Revenue from operations (Gross)

Particulars Year ended Year ended

March 31,2016 March 31, 2015 Sale of Products

Thermoformed Disposal Plastic Products & Plastic Rigid sheets 1 ,06,02,28,960 73,01,47,504 Other operating revenue

Scrap Sales 41 ,02,056 13,47,387 Revenue from operations (gross) 1 ,06,43,31,016 73,14,94,891

Note 19 : Other income


March 31,2016 March 31, 2015 Interest income on Fixed Deposits & Security Deposits 14,61,382 8,68,986 Dividend Income on Non-current investments 40,125 81 ,719 Net (loss)/Gain on Foreign Currency Transaction 25,00,844 -Mis Income 41,513 -Duty DrawBack 72,820 -Total 41,16,683 9,50,705


Note 20 : Cost of materials consumed ''"'"""

l'arliCtJII:If!l"·

Upeniny Slm.:k ot Raw Materials Add: Purchases of Raw Materials Less: Closing Stock of Raw Materials

Total

Details of raw material consumed

Particulars

Polystyrt':!M Polypropylene Poly EthyiP.nP. Terephthalate Master batches Total

Note 21 · Purchases of stock-in-trade

Particulars

I ·-·

Purchases {Thermoformed Disposal Plastic Products)

......... ,,, ", ..... · .. ::.''' ...

Note 22 : Changes in inventories of finished goods, WIP & stock-in-trade

Particulars

Opening Inventory Finished Goods {Thermoformed Disposal Plastic Products) Less: Provision of excise duty on opening stock of Finished goods

Work-In-Progress (Plastic Rigid Sheet) Unusable Wastage (Scrap)

Closing Inventory Finished Goods {Thermoformed Disposal Plastic Products) Add: Provision of excise duty on closing stock of finished goods

Work-In-Progress (Plastic Rigid Sheet) Unusable Wastage (Scrap)

Net

(Amount in Rs.)

, ::::.:::.,.:::.:::::.' 11111111' 111111 l~w·::::::::: " .(:JI:'"·:. , M o.d · :. · . . . · •'l1ll'l'l"' :· :·• .. ~~

· . . ..... ""' ,,.,,.,(,.,,.,. .. """"" ··y.A;~r· lilnAII'r· :: .............. ::. '""" ... :, ~iiilr ·wn dwct· · ·: .: ...... .

'!.'"'''

March 31, 2016 March 31, 2015

3, 69,18, 506 47,70,24,782 2,82,48,823

48,!16,94,465

Year end.E1d ... Marc.~ .. ~ )!. ~016

8,85,29,510 32,01 ,30,981 3,22,07,613 4,48,26,362

48,56,94,465

Year ended March 31, 2016

98,68,955

98,68,955


1,87,10,014 20,78,890

1,66,31 ,124 1 ,61 ,75,330

1,74,544 3,29,80,998

1 ,59,88,348 19,98,543

1,79,86,891 1,27,64,797

18,61,784 3,26,13,473

3,67,525

1,30,29,837 37,61,42,797 3,69,18,506

35,22,54,128

Year endeq .. Marc~, ~.1 . 2015 .

11 ,20,85,507 18,77,24,978 3,09,17,469 2,15,26,174

35,22,54,128


1,88,00,487

1,88,00,487

Year ended March 31, 2015

2,88,68,025 31,75,586

2,56,92,440 1,10,79,739

5,02,545 3,72,74,724

1,66,31 ,124 20,78,890

1 ,87, 10,014 1,61 ,75,330

1,74,544 3,50,59,888

22,14,836


(Amount in Rs.) Note 23 : Employee benefits expenses

Particulars Year ended Year ended March 31 , 2016 March 31 , 2015

Salary, Bonus and Incentives 5,66,97,227 4, 18,12,304 Directors Remuneration 88,00 ,000 60,00,000 Contribution to provident fund 27,50,059 17,09,890 Gratuity 7,79,423 2,89,327 Staff welfare expenses 9,74,282 8,10,335 Total 7,00,00,991 5,06,21,856

Note 24 : Finance costs

Particulars Year ended Year ended March 31 , 2016 March 31 , 2015

Interest to bank 3,74,40,453 3,78,79,687 Interest to financial companies 14,36,328 2,30,849 Bank Charges 6,02,009 3,53,097 Other borrowing cost 2,00,045 5,79,259 Total 3,96, 78,834 3,90,42,892

Note 25 : Other expenses


March 31, 2016 March 31, 2015 Store and Spare Parts Consumed 1,04,57,928 86,11 ,259 Power and Fuel 3,65,86,014 3,30,75,748 Printing Consumables 34,44,549 25,81 ,721 Factory Expenses 65,59,756 44,31 ,785 Repairs and maintenance

Plant and machinery. 12,18,867 7,96 ,890 Building. 32,15,077 10,40,018

Jobwork 2,07,16,294 76,13,419 Packing Material Consumed 4,53,55,864 3,62,26 ,054 Printing Ink Consumed 55,79,759 31,45,745 Insurance 14,52,243 11 ,16,095 Rent 14,55,703 5,70,000 Transport Outward 2,48,28,251 2,22,59,415 Travelling Expenses 38,24,134 19,57,199 AMC Service 32,05,562 5,00,000 Legal and Professional Charges 38,57,124 17,22,729 Commission Expenses 27,56,412 1,33,998 Communication Expenses 27,55,430 29,55,022 Payment to auditors 11 ,53,913 6,87,873 Net loss on Foreign Currency Translation - 3,14,509 Sundry Balance Written Off(Net) 15,11 ,735 9,62,019 Provision for doubtful debts - -

Provision for excise duty on finished goods 19,98,543 20,78,890 Miscellaneous Expenses 69,89,529 48,02,382 Total 18,89,22,689 13,75,82,770


(Amount in Rs.) Payment to auditors:


March 31 , 2016 March 31, 2015 As Auditor:

Audit fees 4,00,000 4,00,000 In nthP.r r.i'lpi'lr.ity-

Taxation matter 4,79,550 2,21,373 Company Law matter 70,000 55,000 Othi r iirvic~Ys 2, 04,363 11 ,GOO

Total 11,53,913 6,87,873

Note 26 : Prior period (Expenses)/lncome (Net)


March 31, 20~6 March 31 , 2015

Prior Period Income R.eversal of Excess depreciation provided in early year 14,50,715 6,88,493 I!J\t;l:!ss GnHully ~luvlsiUIIII:!VI:!I SI:!U uu r1t1~ !tiEl YE!~r - j,HIJ,IJ1b Foreign Exchange Gain Less Prior Period Expense Excess Interest on Fixed deposits reversed during the year - 32,197

Total 14,50,715 10,42,911

Note 27 : Earning Per Share


March 31, 2016 March 31 , 2015 Basic/Dilutive Earnings per Share Profit attributable to Equity shareholders 7,94,13,345 67,57,822 Weighted average number of equity shares 24,93,687 24,78,687 Basic Earnings Per Share 32 3 Face value per Share 10 10

Note 28 : In the opinion of the Board the Current Assets, Loans & Advances are realisable in the ordinary course of business atleast equal to the amount at which they are stated in the Balance Sheet. The provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

Note 29(a) : Contingent Liabilities - Disputed Statutory Dues

Particulars Year ended Year ended March 31,2016 March 31, 2015

Sales Tax Demand in dispute* 1,34,734 1,34,734 Income tax demand of A.Y. 2010-11 - 7,05,640 Income tax demand of A.Y. 2011-12 - 1,81,570 Income tax demand of A.Y. 2012-13(Rajshree Industries) 2,09,710 2,09,710 Income tax demand of A.Y. 2012-13(Rajshree Polypack Private Limited) 1,34,830 -

4,79,274 12,31,654 * On account of non collection of C form and H form from Customers.

Note 29(b) · Contingent Liabilities· others Commitments

Particulars Year ended Year ended March 31 , 2016 March 31, 2015

Guarantee given by Bank on behalf of the Company - 8,70,000 Collateral security given to Bank towards credit facility to group entity 1,30,00,000 1,30,00,000 Custom Duty against Export Obligation (Refer Note below)* 51 ,01 ,657 1,02,92,037 Custom Duty against Export Obligation (Advance License)** 9,04,681 -

Estimated amount of contracts remaining to be executed on capital account (net of advances) 7,83,26,188 19,93,903

TOTAL 9, 73,32,526 2,61,55,940


(Amount in Rs.) Notes *The Company has obtained license under Export Promotion Capital Goods Scheme (EPCG) for import of capital goods on zero percent custom duty. Under the EPCG the Company needs to fulfill certain export obligations, failing which, it is liable for payment of custom duty. Export Obligations as on 31st March, 2016 is Rs.3,06,09,939/- (PY Rs.5,40,21 ,882/-).

**The Company has obtained Advance License for import of capital goods on zero percent custom duty. Under the Advance Licence scheme the Company needs to fulfill certain export obligations, failing which, it is liable for payment of custom duty saved on import. Export Obligations as on 31st March, 2016 is Rs.34,23,161/- (Nil).

Note 30 : Disclosure as required by AS-15 Employee Benefits as notified by the Companies (Accounting Standard) Rules, 2006

Principal actuarial assumptions

Particulars Year ended Year ended March 31, 2016 March 31, 2015

Rate of Discounting 8.00% p.a. 8.00% p.a. Rate of increase in Salaries 6.00% p.a. 5.00% p.a.

* The estimates of future salary increases, considered in a valuation, takes account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

(i) Changes in the present value of defined benefit obligation representing reconciliation of opening and closing balances thereof


March 31, 2016 March 31,2015 Present value of obligation as at the beginning of the year: 10,65,325 7,69,662 Interest cost 85,226 71 ,656 Current service cost 3,25,925 1,96,583 Benefits paid -

Actuarial (gain) I loss on obligation 4,30,589 27,424 Closing Present value of obligation 19,07,065 10,65,325

(ii) Actuarial gain/ loss recognized in the Statement of Profit and Loss:


March 31, 2016 March 31,2015 Actuarial gain/ (loss) on obligation for the period 4,30,589 27,424 Actuarial gain/ (loss) on plan assets for the period 30,530 57,672 Actuarial (gain)/ loss recognized during the year. 4,61 ,119 85,096

Rajshree Polypack Private Limited Accompanying notes to the financial statements for the year ended March, 2016

(Ill) Ttl~ ::lttlbutlt!> r1lC09\'\I:tM II'\ tM l::lillc'lt'l<':(!) SliM! are as tallows:

'' ...... ' ... ,,

Particulars

Present value of obligation as at the end of the year Fair value of plan assets as at the end of the year Funded value ur a:;:;el:; (unfunded) Net assets I (liability) recognized in balance sheet

(iv) The amounts recognized in the Statement of Profit and Loss are as follows:

Particulars """'"'""''"' ,, u.lllllllll•loiiOI .. UIIIIIIIIIIII llllll I 111"1111111'·01'1':01,''"'''''

OUI' I'~I'1l .!. ~l ' v il.t:: L,U&l

Interest cost Net actuarial (gain) I loss recognized in the year Fx pf:'l l':'t":i Jf:'r.:ot.lniLP.',I in \h~ i\il\~m~nt gf IHQfit ilnd IO!i!i*

Note 31 : Related Party disclosures a. List of related parties

Name of the Party Managing Director Managing Director Director Substantial Shareholder

Relative of Director with whom transaction has been entered during the year

Director is Karta with whom transaction has been entered during the year

Enterprises having same Key Management Personnel and I or their Relatives with whom transaction has been entered during the year

Ramswaroop Radheshyam Thard Naresh Radheshyam Thard Sajjankumar Nanikram Rungta Wifag Polytpe Holding AG

Anand Sajjankumar Rungta Radheshayam Jugalkishore Thard Shashi Ramswaroop Thard Varsha Naresh Thard Sajjankumar Nanikram Rungta HUF

Babson Industries Orbit Industries Rajshree lnfotech S.R. Plastics

Year ended '

March 31 , 2016 (19,07,065) 12,22,906 (6,84,15()) (6,84,159)

Year ended 1111111111111 '""'""'March"'B1•,"2016· .

3,2~.92~

(7,621) 4,61 ,11() 7,7fi , ~ ?;i

Relationship

(Amount in Rs.)

Ill,.,

AS at March 31, 2015

10,65,325 11 ,60,589

-95,264

Year ended March 31 201•5'"""""' . '

1 , 9~.M3 7,648

85,096 ;),ftil ,;i;) t


(Amount in Rs.) b. Transactions with Related Parties :

Name of Party Nature of Transaction Year ended Year ended March 31, 2016 March 31, 2015

Job work charges paid 9,44,561 15,74,404 Babson Industries Sales 10,65,024

Purchases 30,66,317 12,31 ,087 Purchases 6,46,399 25 ,05,892

Orbit Industries Sales 92,00,016 73,27,208 Job work charges paid 1,59,73,177 22,81,466 Purchases 15,40,630 52,03,442

S. R. Plastics Plant & Machinery 29,35,078 Sales 6,18,750 Jobwork charges paid 26,340

Rajshree lnfotech AMC Service 31 ,50,000 5,00,000 Wifag Polytpe Holding AG Interim Dividend 29,68,112

Share Proceeds Received 18,000 Radheshyam Jugalkishore Thard Security Premium 72,000

Interim Dividend 69,464 Share Proceeds Received 18,000

Shashi Ramswaroop Thard Security Premium 72,000 Interim Dividend 69,464 Share Proceeds Received 18,000

Varsha Naresh Thard Security Premium 72,000 Interim Dividend 69,464 Share Proceeds Received 54,000

Anand Sajjankumar Rungta Security Premium 2,16,000 Interim Dividend 2,31,084.00 Directors Remuneration 50,00 ,000 36,00,000

~amswaroop Thard Share Proceeds Received 6,30,000 Security Premium 25,20,000 Interim Dividend 24,31 ,212 Directors Remuneration 38,00,000 24,00,000

Naresh Radheshyam Thard Share Proceeds Received 5,22,000 Security Premium 20,88,000 Interim Dividend 19,91,772 Loan Taken 50,00,000 Loan Repaid 50,00,000

Sajjan N Rungta HUF Share Proceeds Received 5,40,000 Security Premium 21 ,60,000 Interim Dividend 20,84,176

c. Balance Outstanding of Related Parties :

Name of Party Receivable I Payable Year ended Year ended March 31, 2016 March 31, 2015

Babson Industries Trade Payable 21 ,11,481 4,56,843

Orbit Industries Trade Payable 29,40,984 15,45,600 Trade Receivable 6,426 59,29,647

S.R.Piastics Trade Payable 18,57,765 3,44,423 Rajshree lnfotech Creditors for Expenses 3,65,625 2,50,000 Note: Reimbursement of Expenses 1n the normal course of busmess has not been considered


(Amount in Rs.) Note 32 : Information pursuant to para 5(viii) of the General Instructions to the Statement of Profit and Loss

(a). Earnings in foreign currency (on accrual basis):

Year ended 31st Year ended 31st Particulars March, 2016 . . March,.2015

''"'""""' ""' """ """""'""" '"''"

Export on F.O.B basis 4,88,12,886 73,43,452 IUIAL 4,88,12,886 73,43,452

(U) CUIIUUII\~tltlf1 tlf rt1W hli:i!CFIOI!l '

P~rti,«;:t.ihil's '' ""' Yl=!i!rel)g~q. M.ilr.ch . ~1 ... 2016 ....... Ye.ar (')ndcd Mc;~rch 31·, ?Q1 ~

Amount Percentage Amount Percentage lmport11d 7, 00 ,81,863 16% 3,70,74,045 11 % htJiyUIIUlJU 4 ' 1 ,47 ,' 1 ~,Cillt! OG% j1,4j ,I' 'J,1U'J u~·) ~

Total 48,56,94,465 100% 35,22,54,128 100% -

(b). C ~;;mumption of components and cparo parte: - Year ended Year ended

Particulars March 31, 2016 March 31, 2015 Amount Percentage Amount Percentage

Imported 26,11 ,145 25% 22,91 ,201 27% Indigenous 78,46,783 75% 63,20,058 73% Total 1,04,57,928 100% 86,11,260 100%

Note 33 · Value of Imports on C I F Basis· . .


March 31, 2016 March 31, 2015 Raw Materials 5,66,14,071 3,78,74,945 Components and spare parts 34,72,813 22,91 ,201 Capital goods 3,82,40,758 88,66,130 Total 9,83,27,643 4,90,32,277

Note 34 : Expenditure in foreign currency :


March 31, 2016 March 31, 2015 Foreign Travelling Expense 4,85,483 40,680 Total 4,85,483 40,680

Note 35 : Dividend Remitted in foreign currency Year ended Year ended

Particulars March 31 , 2016 March 31, 2015 Rs Euro Rs Euro

2015-16 Interim dividend to 1 shareholder on 7,42,028/ 29,68,112 44,284 - -shares of Rs 10 each.

Total 29,68,112 44,284 - -


(Amount in Rs.) Note 36: The Company has taken premises on operating lease and entered in to non-cancellable Leave and License Agreements with various parties. The agreements have been entered for a period of 60 months with non cancellable period of 36 months The disclosure required to be made in accordance with Accounting Standard 19 on "Leases" is as under;

a) Future minimum lease payments under non-cancellable operating leases in aggregate for the following periods:

Particulars As at As at 31.03.2016 31.03.2015

Not later than one year 9,43,397 -

Later than one year and not later than five years 31,25,430 -

Later than five years Nil -

b) Initial direct costs incurred on these leasing transactions have been recognized in the Statement of Profit and Loss.

Note 37: Disclosure in terms of section 186 (4) of the Companies Act, 2013: During the year, the Company has provided collateral security to the bank in respect of credit facility obtained by group concern for the General Corporate purpose. The full particulars of the security provided is as below :

Name of the Entity Year ended Year ended March 31,2016 March 31,2015

Babson Industries 1,30,00,000 1,30,00,000 Total 1,30,00,000 1,30,00,000

Note 38 : In the opinion of the Management, the Company is mainly engaged in the business of manufacturing "Thermoformed Disposal Plastic Products ". All other activities of the Company revolve around the main business and as such, there are no separate reportable segments that require reporting under Accounting Standard 17- "Segment Reporting".

Note 39:Effective from April1 , 2014, the Company has charged depreciation on its assets based on their useful life as stipulated under Schedule II of the Companies Act, 2013. Due to this, the depreciation for the Previous year ended on 31st March, 2015 is lower by Rs.15,65,223 as compared to the depreciation computed under the provisions of the Companies Act, 1956. Further, based on the transitional provision as provided in Note 7(b) of Schedule II, Rs. 2,86,578 has been adjusted against opening balance of retained earnings and corresponding impact of Deferred Tax Liability amounting toRs. 88,553/- has also been adjusted against opening balance of retained earnings.

Note 40: Pending completion of the formalities of transfer of titles of Assets, certain vehicles and fixed deposits acquired on conversion of partnership firm to company on 15th october 2011, are held under the name of erstwhile firm ..

Note 41 : The previous year's figures have been re-grouped I re-classified to confirm to this year's classification.

For and on behalf of the Board of Directors of


~ t~~-~

R mswaroop Thard anaging Director

DIN: 02835505 Place: Mumbai

Date: g·t\1 $ e.pt'U'n. b t.r 1 2 0 I b

Naresh Thard Managing Director DIN: 03581790

s g c 0 co. - rajshreepolypack.com · sales tax act 1,34,734 f.y. 2006-2007 appellate tribunal ......

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